The Balance Transfer Cards section of The Finance Reveal covers one of the most powerful tools for getting out of expensive credit card debt, when it is used correctly. A balance transfer moves what you owe onto a new card with a low or zero introductory interest rate, giving you a window to pay down the balance without interest eating your progress. Used carelessly, it can quietly add to the problem. We explain exactly how balance transfers work, including the introductory period, the transfer fee that usually applies, and what happens to the rate when the promotional window ends. We show you how to work out whether a transfer will actually save you money, how much to pay each month to clear the balance in time, and why putting new spending on the card can undo the benefit. Our guides walk you through choosing a card, completing a transfer, and avoiding the common mistakes: missing a payment and losing the promotional rate, transferring more than you can realistically repay, or treating the breathing space as a reason to relax. We are honest about who benefits from a transfer and who would be better served by another approach. Balance transfers sit within Credit Cards and are really a Debt tool, so the two work hand in hand. A successful payoff plan depends on your Budgeting, and clearing the balance lifts your Credit Score. To see whether a transfer saves money once the fee is included, our financial tools can run the numbers, and our financial glossary explains terms like introductory APR and transfer fee. Everything here is independent and practical. Start with the guide that matches your situation, and use a balance transfer as the stepping stone out of debt it is meant to be.
A balance transfer card can be the cheapest escape route from credit card debt: move your balance to a card charging zero percent for a promotional period, and every payment attacks the principal instead of…